The Role of Multinational Corporations in Economic & Social Development of Poor Countries: Leading Toward a Better World?

Abstract

Global corporations have a key role to play in issues ranging from human rights to environmental policies. Specifically, corporations can be most effective in helping the poor by investing in local and global communities on a long-term basis rather than by acting as charities or aid agencies. However, to do so, corporations must restore the public's trust. They must demonstrate that their presence, particularly in poorer countries and the emerging market economies, is a source of human progress. They must demonstrate that globalisation is not a zero-sum game in which the rich get richer and the poor get poorer. In this regard, those who argue against globalisation are denying 1.5 billion people, who live in absolute poverty, the means of escape. To do nothing is morally unacceptable. The world is watching the corporate sector. This is a moment of great challenge, but also of great opportunity because if corporations can demonstrate that they are agents of progress, they can remove the doubts and renew the trust that is essential for both prosperity and security.